Wednesday, August 26, 2009

In the early 2000-s, the audio recording industry lost its Internet battle to Napster and other P2P services. At the time, a lot of folks in Hollywood were really concerned that video will follow the same path. They were scared stiff of the new media. But judging from this Bloomberg report, Hollywood seems to have figured out a way to make money on digital content distribution:

Digital movie revenue for online stores in the U.S., including computer downloads that can be transferred to handsets, may grow to more than $1 billion in 2013 from about $215 million last year, said Dan Cryan at London-based video analysts Screen Digest.

Studios get paid when a movie is downloaded and their cut varies according to how new and popular the film is, said Leslie Golding, a founding partner at Acetrax AG, the content aggregator that built Samsung’s store.

Most revenue from films sold by phone makers ends up with studios, as handset makers are willing to sell movies for less than they pay to studios, according to Screen Digest.

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